What is the formula for operating leverage please?
I found this on a website:
Operating Leverage = [Quantity x (Price - Variable Cost per Unit)] / Quantity x (Price - Variable Cost per Unit) - Fixed Operating Cost
However the brackets confuse me and my calculations don't seem to match the one on the website's example. It looks like something being divided by the same something (creating 1) and then subtracting something that will give a negative answer!
Please help!